PAUL PALGUTA, FOUNDER OF RIVERSEDGE ADVANCED RETIREMENT SOLUTIONS LLC, DIES BY SUICIDE AMID ALLEGATIONS OF DEFRAUDING CLIENTS OF AT LEAST $16 MILLION – FEDERAL INVESTIGATORS PURSUE FORFEITURE OF ASSETS, INCLUDING LAVISH PROPERTIES AND POSSESSIONS
Paul Palguta, the founder of RiversEdge Advanced Retirement Solutions LLC, has tragically taken his own life amid allegations of defrauding clients of at least $16 million between 2013 and 2024 to support his lavish lifestyle. Federal investigators have announced that they will pursue forfeiture of Palguta’s bank accounts, assets, and possessions, including a 20,000-square-foot Victorian property, golf simulator, gold bracelets, necklaces, designer purses, and other luxury items.
The U.S. Department of Labor filed a complaint in January alleging that Palguta and RiversEdge embezzled at least $8 million from 17 accounts and attempted to conceal the shortfalls by redistributing funds from other accounts. A forensic audit revealed even greater losses, and investigators discovered that Palguta oversaw 240 retirement and profit-sharing accounts, including those for various small employers and organizations.
Palguta’s company, RiversEdge Advanced Retirement Solutions LLC, was established in 2009, and he was described as a 25-year veteran of the retirement services industry. However, his reputation was tarnished when he initiated a series of events in October 2023 by placing an order to purchase shares for the Beaver County Deferred Compensation Plan, which ultimately led to an audit and the discovery of the alleged fraud.
The investigation revealed that Palguta had transferred funds from other accounts to fulfill the order, triggering an audit conducted by American Trust Custody. The findings of the audit led to the allegations of fraud and the subsequent legal action against Palguta and RiversEdge.
This tragic turn of events has left the community in shock, and the details of the case are still unfolding. The allegations against Palguta and RiversEdge are serious and have had far-reaching consequences. As the investigation continues, it is essential to remember the importance of accountability and the need for transparency in the financial services industry.
